CHENNAI REALTY CITYSCAPE - QUIKRHOMES |DECEMBER- 2016
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QuikrHomes |December- 2016
Chennai Realty Cityscape
http://www.quikr.com/homes
Executive Summary
Chennai, generally known as the Gateway to southern India, is well known for its temples, port centric business,
engineering, manufacturing and IT/ITES sector.
Chennai is experiencing a high growth rate (as per the study conducted by National Housing Bank) post 2008-
2012 global financial crisis. This cosmopolitan city ranks 6th in housing the country’s ultra-rich population. In
Chennai, residential housing prices rose over 11 per cent during the Q4- 2014 quarter, as compared to the same
quarter a year earlier. While other major cities were struggling with the global financial crisis and took long time
to overcome the after effect, the Chennai residential market has witnessed speedy recovery.
Chennai floods in 2015 have left a grave impact on the real estate market, the market sentiments headed towards
south with marginal increase in capital price and stagnation in new launch supply. The realty sector faced a
whopping loss of Rs.30,000 crore approximately.
Improved social and physical infrastructure development and easy accessibility and connectivity via railroad
network is the backbone of the Chennai residential market and has significantly boosted real estate development
in and around the region. Further development of Ponneri Smart city in North Chennai and development of
Chennai -Bangalore Industrial Corridor (CBIC) will surely impact the residential market of Chennai and boost
commercial activity between Bangalore and Chennai. Additionally, CBIC will provide world class connectivity to a
port (Chennai) in the Bay of Bengal.
The Chennai residential market has noted a decrease of new launch supply in 2016 compared to its previous year,
an approximate 57 percent downfall has been witnessed. Post flood the market sentiments remained weak and a
marginal number of launches in South and West Chennai have been witnessed. However, there was an
improvement in housing sales observed during 2016.
South & West Chennai remained the cynosure of real estate development in the city. The commercial corridor
along with the Old Mahabalipuram Road and global manufacturing companies along Sriperumbudur has
impacted the real estate scenario in the region with the rise in demand of more housing units. An approximate
12,620 dwelling units has been infused in the residential micro markets of these zones in 2016. Which is 97
percent of overall new launch supply in the year 2016.
The Old Mahabalipuram Road (OMR) stretch has witnessed some positive traction during 2016, a mix of
affordable and mid segment projects by reputed builders have been launched in this belt. Kelambakkam,
Sholinganallur and Maraimalai Nagar are some of the active micro markets of OMR road and have contributed
significantly to dwelling supply.
1. INTRODUCTION/CITY OVERVIEW
Overview: Chennai City
Chennai, popularly known as Madras until 1996, is not just the capital of Tamil Nadu but also the fourth largest
metropolitan city in the country. Situated on the Coromandel Coast of the Bay of Bengal, this city is termed to be the
‘Gateway of the South’. Having undergone a series of historical metamorphosis since 1th Century, Chennai has emerged as
one of the cosmopolitan cities in India.
Chennai Metropolitan Area (CMA) has been constituted in the recent years, by the agglomeration of the metropolitan city
of Chennai and its suburbs making it one of the important center in terms of culture, trade, commerce and education and
fourth-most populous urban agglomeration in India. With Chennai selected among the 20 Indian cities to be transformed
into a Smart City, under the Smart Cities Mission launched by the Government of India, there will be huge development in
the near future.
Quick Facts
Chennai City Area: 426 Sq.km Chennai Metropolitan Area: 1189 Sq.km
Population: 4.6 million Population: 8.6 million
Economic Overview of the City
Chennai has a well-balanced and diversified economy between manufacturing and service sectors. Chennai’s economy is
currently the fourth largest in India and is forecasted to grow to 100 million dollars (which is 2.5 times the current rate) by
the year 2025. It is one among the top 10 fastest growing cities in the world according to Forbes Magazine. The city ranked
at 4th position and boasts of hosting vast number of Fortune 500 companies of India.
Industry Overview
Chennai is proposed to have Chennai Aero Park which will be the largest integrated
Aerospace sector aerospace ecosystem in the whole world. Mahindra Aerospace has its largest R&D facility
of India in Chennai
With a major chunk of India’s Automobile industry prevailing in and around Chennai, it is
often referred to as the ‘Detroit of South Asia’ attributing to the highest percentage (60%)
Automotive sector of automotive export. The prominent automotive companies present here are BMW,
Caterpillar, Hyundai, Nissan, Daimler, Apollo Tyres, Ashok Leyland, Royal Enfield and
Mahindra & Mahindra
Chennai plays a vital role in World banking and finance with many financial institutions
Banking and Finance having their headquarters here. World Bank, Asian Development Bank, Goldman Sachs,
sector ABN AMRO, Citibank, Standard Chartered Bank and Deutsche Bank run their Development
Centre operations from Chennai
Chennai is a hub to Electronic and Hardware manufacturing plants with the major players-
Electronic/ Hardware
Dell, Samsung, Sony Ericsson, Siemens, Flextronics, Xerox, Cisco, Huawei, Nokia
Manufacturing sector
Corporation and Sanmina-SCI
Chennai also gained popularity for being the second largest exporter of software,
Information Technology (IT) and IT enabled Services (ITeS) particularly Business Process
IT sector
Outsourcing (BPO). According to AT Kearney's Indian City Services Attractiveness Index,
Chennai is one of the most attractive cities for offshoring services.
Chennai is also one of the largest healthcare provider in Asia with the presence of top
Medical Tourism medical institutions such as Apollo Hospitals, Adyar Cancer Institute, Sri Ramachandra
Medical Centre, Sankara Nethralaya, MIOT Hospitals and Fortis Healthcare
Chennai is experiencing a high growth rate (as per astudy conducted by National Housing
Retail and Real Estate
Bank) post 2008-2012 global financial crisis. This cosmopolitan city ranks 6th in housing
sector
the country’s ultra-rich population
Table 1.1: Economic Industry Overview
Price Index : Chennai vs Top Cities
Figure 1.1: Price Index - Top Cities
As per the National Housing Bank’s Residex index, Chennai city has witnessed an upsurge in residential property prices
compared to other major cities. National Housing Bank’s Residex index tracks the movement in prices of residential
properties on a quarterly basis and cover 26 major cities in India.
In Chennai, residential housing prices rose over 11 per cent during the Q4- 2014 quarter, as compared to the same quarter
a year earlier. Being an end-user market, the Chennai residential market recovered on the fast pace during the global
financial crisis and recorded a significant upsurge in residential demand. However, post the flood Chennai’s residential
market has witnessed a slight decrease in new launches.
Impact of Chennai floods on the property
market
Chennai floods in 2015 have left a grave impact on the real estate market, disturbing the city’s sentiments. Prospective
investors have held back on buying decisions to purchase properties in low lying areas of Chennai. The realty sector faced
a whopping loss of Rs.30,000 crore approximately. Micro markets in Chennai which are adversely affected and shunned by
majority of the buyers post-floods are Tambaram, Urapakkam, Mudichur, Perumbakkam, Velachery, Saidapet, Pallikaranai
and Keelkattalai.
2. CITY ZONES OVERVIEW
Overview: City Zones
Chennai, being a coastal city bound by Bay of Bengal on the eastern direction, the city has been constantly growing and
expanding in-land. Presently, there are four broad zones in Chennai namely Central, West, North and South zones
Central Zone
The central zone of Chennai is the oldest, most developed and is the commercial heart of the city. Central Chennai offers
excellent connectivity and there are a huge number of offices in the Central Business District (CBD). This zone of Chennai
constitutes of both high-rise residential properties as well as independent units and bungalows.
Prominent Localities: Egmore, T Nagar, Anna Salai, Nungambakkam, Mambalam, Triplicane, Boat Club Road and Poes
Garden
Illustration 1.0 : Map depicting Central Chennai Zone along with its prominent localities
Overview: City Zones
West Zone
With increasing saturation in Central Chennai, West Chennai has evolved in terms of real estate development. Presence of
Multinational companies like Hyundai, Dell, Nokia, Samsung and Saint-Gobain along with the electronic hardware
establishments in Sriperumbudur and Auto ancillary manufacturing units in Oragadam led to a growth in the residential
market in this zone. IT and financial companies along the Chennai Bypass Road and ORR are boosting up real estate in West
Chennai
Prominent localities: Maduravoyal, Vanagaram, Iyyappanthangal, Avadi, Poonamallee, Sriperumbudur, Villivakkam, Porur,
Koyambedu, Ambattur and Oragadam
Illustration 2.0 : Map depicting West Chennai Zone along with its prominent localities
Overview: City Zones
North Zone
When compared to West and South zones of the city, Northern Chennai predominantly comprises of industrial pockets and
port-related activities due to the presence of the Chennai Port and Ennore Port; thereby restricting real estate growth in
this region. Other factors hampering development here are narrow arterial roads and non-availability of vacant land.
Prominent localities: Red Hills, Tondiarpet, Perambur, Ayanavaram, Vyasarpadi, George Town, Madhavaram, Purasavakkam,
Kolathur and Ennore
Illustration 3.0 : Map depicting North Chennai Zone along with its prominent localities
Overview: City Zones
South Zone
Due to the presence of IT parks, SEZs and manufacturing units, the South Zone of Chennai has evolved as a commercial
hub along the Old Mahabalipuram Road (OMR) and Grand Southern Trunk (GST) Road. These establishments in turn have
given a boost to the real estate market in this region.
Prominent localities: Velachery, Maraimalai Nagar, Navalur, Alandur, Old Mahabalipuram Road (OMR), Perungudi, Grand
Southern Trunk (GST) Road, East Coast Road (ECR), Adyar, Medavakkam, Chromepet, Siruseri, Vandalur, Tambaram and
Sholinganallur.
Illustration 4.0 : Map depicting South Chennai Zone along with its prominent localities3. INFRASTRUCTURE OVERVIEW
Infrastructure Overview
Major Infrastructure Projects: Existing
Road Network
Name Connectivity Description
From Madhya Kailash junction to It connects the city centre with the
Mahabalipuram southern part of Chennai viz.
Old Mahabalipuram Road (OMR)
Perungudi, Siruseri and
Kelambakkam
From Thiruvanmiyur to Exists parallel to OMR, it connects
East Coast Road (ECR)
Mahabalipuram coastal suburbs of South Chennai
From Krishna Nagar to It connects southern Chennai to
Bypass Road
Mettupalayam Northern Chennai
Connects OMR in Thiruvanmiyur to It runs close to Central Chennai
Inner Ring Road SH 104 near Manali through locations viz. Koyambedu,
Villivakkam, Anna Nagar
From Vandalur till Nemilichery The six-lane highway connects GST
Outer Ring Road Road with the Chennai-Bangalore
Highway and NH-205
From Chennai Central Railway It connects western areas namely
Chennai-
Station to Bangalore Poonamallee and Sriperumbudur
Bangalore Highway (NH-4)
with the city Centre
From Basin Bridge to Kottur It connects Chennai Port with the
Chennai Kolkata Highway (NH-5)
Northern parts of Chennai
From Fort St. George to Mahindra It provides connectivity from city
Anna Salai-GST Road (NH-45)
World City via airport Centre to southern Chennai.
Table 3.1: Existing Infrastructure Overview – Road Network
Rail Network
Name Connectivity Description
Chennai Beach - Thiruvanmiyur - It connects Velachery via TIDEL Park
MRTS
Velachery to the central part of Chennai
Chennai Central - Avadi - Tiruvallur- It connects the North-western areas
Suburban Rail: West Line Arakkonam of Ambattur and Avadi with central
Chennai
Chennai Central - Ennore - It connects northern Chennai with
Suburban Rail: North Line
Gummidipoondi-Sullurpeta Central Chennai via Tondiarpet
Chennai Beach- Chengalpattu- It connects southern Chennai with
Suburban Rail: South Line Villupuram Central Chennai via St. Thomas
Mount
Chennai Beach - Tambaram - This line runs parallel to GST Road,
Suburban Rail: South-West Line Chengalpattu connecting the Central Chennai with
Mahindra World City via Tambaram
Chennai Central- Tiruvallur- It connects the central part of
Suburban Rail: West-North Line Arakkonam- Tiruttani Chennai with the west-northern
parts via Villivakkam
Chennai Beach- Royapuram- It is the longest line running in the
Suburban Rail: West-South Line Washermanpet- Perambur- west-south direction from Central
Arakkonam Chennai.
Table 3.2: Existing Infrastructure Overview – Rail NetworkIllustration 5.0 : Map depicting existing infrastructure in Chennai
Infrastructure Overview
Major Infrastructure Projects: Upcoming
Name Connectivity Description Tentative commissioning
A 21,995 acre area in
Ponneri is being
developed as a major
Ponneri Smart City Ponneri Yet to be announced
industrial node and smart
city over the next 20 years
in three phases
It is the second
international airport built
on 4,820 acre along NH-4.
Greenfield Airport Sriperumbudur 2017
It is expected to operate
along with the existing
airport at Meenambakkam
The corridor (which passes
through the states- Andhra
Runs through Chennai, Pradesh, Tamil Nadu and
Sriperumbudur, Chittoor, Karnataka) is proposed to
Chennai-
Ponnapanthangal, Ranipet, boost commerce between
Bangalore Industrial Yet to be announced
Chittoor, Bangarupalem, South India and East Asia
Corridor (CBIC)
Palamaner, Bangarpet, by enhancing the
Hoskote and Bangalore transportation of goods
from industrial nodes to
Chennai/Ennore ports
The aerospace industrial
park is being set up on a
250 acre campus
(expandable to 700 acre).
Chennai Aerospace Park Sriperumbudur It is proposed to cater Yet to be announced
exclusively to aerospace
technology and
manufacturing of its
components.
Table 3.3: Upcoming Infrastructure OverviewInfrastructure Overview
Major Infrastructure Projects: Upcoming
Road Network
Name Connectivity Description Tentative commissioning
It will connect NH-205
with Chennai-Kolkata
Nemilicherry- Nallur- highway and Tiruvottiyur
Outer Ring Road Phase II 2017
Minjur Ponneri Panchetti (TPP)
Road at Minjur through a
six-lane highway
It is a 19 km elevated
expressway proposed
between Maduravoyal in
the west and Seaport
Maduravoyal- Chennai along the Cooum River.
Maduravoyal Expressway Yet to be announced
Seaport The project is currently on
halt pertaining to
disagreements on
alignment of the
expressway
Table 3.4: Upcoming Infrastructure Overview – Road Network
Rail Network
Name Connectivity Description Tentative commissioning
Washermenpet - Chennai It will connect Chennai
Metro Corridor I Central station - Chennai International Airport and 2017
International Airport central Chennai via Guindy
Chennai Central - Anna It will connect the city
Metro Corridor II Nagar - Vadapalani - St. Centre and St. Thomas 2017
Thomas Mount Mount
It will connect the metro
and MRTS lines at St.
Velachery - St. Thomas Thomas Mount,
MRTS Extension 2017
Mount connecting GST Road to
Perungudi and Central
Chennai
It will connect Vandalur
and Tambaram with
Monorail Corridor I Vandalur - Kathipara Beyond 2020
central Chennai via
Velachery
It will connect West
Monorail Corridor II Poonamallee - Kathipara Beyond 2020
Chennai via Porur
It will increase
Monorail Corridor III Porur - Vadapalani connectivity between Beyond 2020
Porur and Vadapalani
Table 3.5: Upcoming Infrastructure Overview – Rail NetworkIllustration 6.0 : Map depicting upcoming infrastructure in Chennai
4. RESIDENTIAL MARKET OVERVIEW
Residential Market Overview
Residential Supply Trend (half yearly) – 2012 onwards
35,000
New Launch supply volume (dwelling units)
The Chennai residential market has witnessed an
increase in new launches during H1 2016 over H2 30,000
2015, the residential supply in the city had been
25,000
deeply affected by the flood in H2 2015.
20,000
2016 remained a relatively silent time frame in the
Chennai residential market, as the city has witnessed 15,000
decrease in new launch supply during this period,
10,000
compared to previous years.
5,000
-
H1 H2 H1 H2 H1 H2 H1 H2 H1 H2
2012 2012 2013 2013 2014 2014 2015 2015 2016 2016
2012 2013 2014 2015 2016
Figure 4.1: Residential Property Supply Trend in Chennai
Possession Trend (half yearly) – 2012 onwards
45,000 With more residential demand in the market oriented
40,000
towards ready-to-move units, there is a high developer
interest in projecting much earlier completion schedules.
35,000
30,000 About 95 per cent of the under construction residential
Dwelling Units
25,000 supply is about to hit the market by 2017
20,000
15,000
10,000
5,000
-
H1 H2 H1 H2 H1 H2 H1 H2 H1
2016 2016 2017 2017 2018 2018 2019 2019 2020
2016 2017 2018 2019 2020
Figure 4.2: Residential Property Possession Trend in Chennai
Residential Supply segmentation Trend (half yearly) – 2014 onwards
Luxury residential projects are seen to be taking a 16,000
Residential Supply (dwelling units)
good share of the market from the second half of 2015 14,000
with growing appetite of the homebuyers for premium 12,000
apartment projects. 10,000
8,000
6,000
4,000
2,000
-
A L A L A L A L A L A L
H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016
(till date)
2014 2015 2016
** Note: A-Affordable, M-Mid, L-Luxury, UL- Ultra Luxury Figure 4.3: Residential Property Budget Breakup Trend in ChennaiResidential Market Overview
Residential Supply Property Type Distribution Trend (half yearly) -2014 onwards
25,000
Residential supply (dwelling units)
20,000
15,000
10,000
5,000
-
Plots
Plots
Villas
Plots
Villas
Plots
Villas
Villas
Plots
Villas
Plots
Villas
Apartments
Apartments
Apartments
Apartments
Apartments
Apartments
H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 (till date)
2014 2015 2016
Figure 4.4: Residential Property Typology Distribution Trend in Chennai
Inline with other metro cities, though Chennai has been picking up the trend of Apartment culture, the city also continues to
show a good appetite for Independent Houses and Villa units.
Limited availability of land near to city Centre has inclined the developer interest towards vertical growth of the city.
Zone wise Supply Trend (half yearly) -2014 onwards
25,000
Residential supply (dwelling units)
20,000
15,000
10,000
5,000
-
South
West
South
West
South
West
South
West
South
West
South
West
Central
Central
Central
Central
Central
North
North
North
North
H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 (till date)
2014 2015 2016
Figure 4.5: Zone Wise Supply Trend in Chennai
It is a known trend that the residential market in the city of Chennai is driven by two major industries, the IT sector towards
the South along both OMR and ECR roads and the manufacturing industry which leads the way towards East and South-east
along GST and Sriperumbudur Roads.
The realty market in North Chennai remained subdued, due to non availability of land parcel for residential development
and congested roads in the region.Residential Market Overview
Key Micro Markets of the Chennai City
As per the discussion above, we can understand that OMR Road
OMR Road
12,000 hosts multiple residential markets. This serves employees from
Kelambakkam Chrompet
10,000 nearby technology commercial establishments and has been a
Medavakkam 8,000 Guduvanchery major go-to destination for home buying as well as rental units.
6,000
Pallavaram 4,000 Perumbakkam Lately there has also been growing interest in the residential
2,000 corridor being developed along the GST Road with prominent
- markets including Chrompet and Guduvanchery.
Perungalathur Pallikaranai
OMR Road
Ambattur Porur
OMR or the Old Mahabalipuram Road is the top micro market
Poonamallee Sholinganallur
for real estate developments in Chennai. The road harbours
Oragadam Avadi
multiple micro markets such as Taramani, Perungudi,
Thoraipakkam. Emergence of IT/ITeS establishments along this
road has given a boost to the residential as well as commercial
Figure 4.6: Key Micro Markets in Chennai development.
Chromepet
Chromepet is the second top micro-market in Chennai. Positioned in Southern part of Chennai, Chrompet real estate is
witnessing great demand from the IT professionals. This micro market is situated along the Grand Southern Trunk (GST)
Road, close to Tambaram and next to Pallavaram. Having a strategic location, this suburb is easily connected to all parts of
the city through road and railway networks.
Guduvanchery
Located in the outskirts of South Chennai on the National Highway 45, Guduvanchery is being increasingly preferred for
buying residential properties by home buyers due to well-laid infrastructure, easy accessibility to railway station, airport and
proximity to educational institutions namely SRM University, Mahindra World School, Vidya Mandir CBSE School, Sankara
Vidyalaya etc.5. 2016 RESIDENTIAL RECAP
2016 Chennai Residential Market Recap
Zone Wise Distribution of New Launch Supply - 2016
South Chennai
60% West Chennai
37%
North Chennai
Central Chennai 2%
1%
South Chennai West Chennai North Chennai Central Chennai
Figure 5.1: New Launch Supply Split Zone Wise
Chennai has seen active residential launches towards both
South and Western zones in the year 2016 even though
developer interest towards South Chennai is growing
significantly as compared to Western Chennai.
South Chennai Key Micro Markets - 2016 West Chennai Key Micro Markets - 2016
12%
22% Vadapalani
Maraimalai Nagar 25%
6% Poonamallee
Navallur
5% Vanagaram
Kelambakkam
Iyyappanthangal
Madambakkam 5% 5% Porur
Singaperumal Koil 20%
5% Avadi
Kolapakkam 63% 6%
4% Others
Others 7%
15%
Figure 5.3: West Chennai Key Micro Markets
Figure 5.2: South Chennai Key Micro Markets
South Chennai has been a busy destination for developers West Chennai is observed to be slowly catching-up with
resulting in more diverse residential markets offering a range of residential launches in the Southern markets and offers
affordable and mid segment projects. Recent interest has been more affordable alternatives in comparison. There is huge
identified in markets such as Maraimalai scope of growth and is seen to be concentrated in some
Nagar,Navallur,Kelambakkam,Madambakkam, Singaperumal prominent markets such as Vadapalani, Poonamallee,
Koil and Kolapakkam the most amongst others. Vanagaram, Avadi, Iyyapanthangal and Porur from the
rest.2016 Chennai Residential Market Recap
Segmentation of New Launch Supply - 2016
4,000 Emergence of large scale residential projects by some
of the prominent developers and builders in the city
3,500 are the reason for domination of Affordable and Mid
segment projects both towards West and South
Residential supply ( dwelling units)
3,000
Chennai.
2,500
2,000
1,500
1,000
500
-
A M L A M L UL
West Chennai South Chennai
Figure 5.4: Segment wise break up
** Note: A-Affordable, M-Mid, L-Luxury, UL- Ultra Luxury
Segmentation of New Launch Supply Breakup wrt Key Micro Markets of South & West Chennai - 2016
South Chennai has been more in focus in terms of
Singaperumal Koil 100%
large scale residential projects with more traits of
Madambakkam affordability. These seem to be majorly concentrated
South Chennai
100%
in markets such as Singaperumal Koil, Madambakkam
Kelambakkam 84% 16% along with Kelambakkam amongst others.
Navallur 100%
Western Chennai has seen a more premium segment
Maraimalai Nagar 4% 96% residential launches this year with Vadapalani having
all luxury projects.
Porur 100%
Iyyappanthangal 100%
West Chennai
Vanagaram 42% 58%
Poonamallee 100%
Vadapalani 100%
0% 20% 40% 60% 80% 100%
Affordable Mid Luxury
Figure 5.5: Segment wise property break up2016 Chennai Residential Market Recap
OMR – A Closer Look
Also known as the ‘IT Corridor’, OMR (Old Mahabalipuram Road)
is promoted by Government of Tamil Nadu as a world-class tech
destination with about three-fourths of Tamil Nadu’s software
exports being shipped out of the corridor which runs from
Madhya Kailash to Siruseri. More than 1.2 lakh employees work
at the IT companies present in this belt. Along with the presence
of Asia’s largest IT Park i.e. Tidel Park, the other technology parks
present here are SIPCOT IT Park, TECCI Park, International Tech
Park, Futura Tech Park and Pacifica Tech Park.
The prominent IT/ITeS establishments in this corridor are Tata
Consultancy Services, Wipro Technologies, Infosys, Polaris
Software Lab, Cognizant Technology Solutions, HCL Technologies,
Satyam Computer Services, Wipro Technologies, Scope
International, Accenture India, Photon Infotech and Bahwan
CyberTek Group.
Price Trend of key Micro Markets along the corridor
8000
7000
6000
5000
4000
3000
2000
1000
0
Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016
Kelambakkam Thoraipakkam Maraimalai Nagar
Sholinganallur Karappakam Semmencherry
Perungudi Navallur
Figure 5.6: Price Trend
There has been a marginal increase of prices witnessed in
Old Mahabalipuram road and its adjoining micro markets,
the residential property prices in the key micro markets
remained muted and weaken during the third quarter of the
year 2016. On an average, the key micro markets along the
50 km stretch have grown at the rate of 4 percent on YOY.2016 Chennai Residential Market Recap
Developer Share along the corridor
Ashiana Housing
2% Surely, OMR Road has been the concentration of big
3% 2% builders in the city. This year, there have been multiple
4% Radiance Realty
Developers India Ltd
residential launches catering to affordable and mid
5% segment mostly from well known builders in the city
Advaita Homes such as Ashiana Housing, Radiance Realty Developers
43% India Ltd, Advaita Homes and Casa Grande Pvt Ltd
17%
BBCL amongst many others
StepsStone
Constructions
PBEL Property
Development India Pvt
24% Ltd
Casa Grande Private
Limited
Figure 5.7: Developer Share
Project/Unit Launches along the corridor
Property
Project Name Builder Name Locality Total Units Min. Ticket Prize
Segment
Affordable Advaita Blossom Advaita Homes Kelambakkam 356 1,985,998
Sree Harsham Sree Builders Maraimalai 32 2,734,623
Affordable
Nagar
StepsStone StepsStone Sholinganallur 76 3,042,239
Affordable Prasanas Constructions
Apartment
Mid Ashiana Ashiana Housing Maraimalai 872 1,952,160
Sumbham Nagar
Mid BBCL Midland BBCL Sholinganallur 108 3,667,083
Mid PBEL City Tower PBEL Property Kelambakkam 68 3,873,750
Siesta Development
India Pvt Ltd
Mid Radiance Liberty Radiance Realty Navallur 484 2,379,405
Developers India
Ltd
Luxury Casa Grande Casa Grande Perungudi 50 6,600,000
Perungudi Private Limited
Table 5.1: Key Launches of 2016
Three projects namely, Advaita Blossom by Advaita Homes, Ashiana Sumbham by Ashiana Housing and Radiance Liberty
from Radiance Realty Developers India have been some of the star projects to be noted down in terms of scale and
affordability. While Casa Grande Perungudi by Casa Grande Private Ltd is a luxury residential markets to look out for.Outlook The Chennai residential market is one of the most stable amongst the top major cities and has witnessed exponential growth over the past decade. IT/ITES, manufacturing and trading industry has changed the real estate landscape of the city and will continue to do the same. Additionally, Tamilnadu government initiatives to improve and upgrade the current physical infrastructure development will boost the real estate activity in the city. The Real Estate (Regulation and Development) Act and the Benami Transactions (Prohibition) Amendment implemented in the year 2016, will ensure the transparency in real estate sector and also help home buyers to take informed decisions. The Centre’s move to demonetize Rs 500 and Rs 1000 currency notes has hit the residential property market, making it more favorable for the buyers. Property developers in the city are reported to be cutting prices by up to Rs 20 lakhs on slow- moving projects. With the impact of demonetization and regulatory bills on the Chennai residential market, the coming time frame will surely witness price correction and transparency in the unorganized real estate sector, it seems that for home buyers “ache din” will not be a distant dream. The South and West Chennai micro-markets shall continue to remain as the most sought after destinations for home buyers due to the availability of commercial office spaces, improved social and physical infrastructure and IT population in the region.
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We capture real estate data across India and also update historical data of supply & absorption in top cities. To ensure the
most up-to-date and detailed data availability, our dedicated team/analysts monitor property activity from a number of
sources, including developers and property brokers, real estate forums and property listings, as well as our own intensive
research.
Our research services give clients the tools to review & analyze markets and realty insights that support successful
investment strategies. The solutions we provide always cater to our clients’ needs as we ensure that all captured data and all
customized reports undergo thorough due diligence by our in-house audit team.
Services Provided:
Land Potential Assessment
Customized Reports
Competitive Benchmarking Study
Market Assessment Reports
Feasibility Reports
Quarterly demand Supply Analysis Report
Projects Monitoring Services
Tier 1 Cities Residential Projects Details with historical price & Absorption Trends
Authors –
Rahul Panwar Meruga Pallavi Abhai Mani Chaturvedi
Asst. Manager | Research Research Associate | Research Senior Manager | Research & Data Services
rahul.Panwar@quikr.com meruga.pallavi@quikr.com abhai.m@quikr.com
For Residential Data Services please contact –
Prashant Kumar Thakur
Head of Research & Data Services
prashant.thakur@quikr.com
Quikr India Pvt Ltd
Next to Manyata Tech Park,
Back Gate No 5. Krishnarajapuram
Hobli,
Bangalore-560045
Copyright © 2007-16 QuikrHomes | CommonFloor. All rights reserved.
The information provided herein is based on QuikrHomes & CommonFloor data which is collected from various publicly known sources viz, websites, documents and maps
including QuikrHomes & CommonFloor's proprietary data model. Projects mentioned in the report are selected solely on basis of various parameters including number of
units, price range and unique selling point, among others. The selection, omission, or content of items does not imply any endorsement or other position taken
by QuikrHomes & CommonFloor.
The information is provided on an "as is" and "as available" basis. QuikrHomes & CommonFloor expressly disclaim warranties of any kind, whether express or implied,
including, but not limited to, the implied warranties of merchantability, fitness for a particular purpose and non-infringement.You can also read
